REA Insights Commercial Property Snapshot, December 2020

After a record-breaking October, activity on realcommercial.com.au slowed in November – a seasonal trend observed almost every year.

However, what is clear is that the disruptions caused by COVID-19 earlier in the year have pent up demand, which has underpinned a flurry of activity in recent months.

In this month’s commercial snapshot, we continue to track search volumes over time and demand by category. We also provide a view of user behaviour by analysing the most-searched keywords per asset class as well as looking at the most popular commercial property listings for the month.

How are search volumes tracking?

Following unprecedented activity in October, the volume of ‘Buy’ searches on realcommercial.com.au declined by 5 per cent last month.

Western Australia (WA) and Northern Territory (NT) were the only two states/territories that recorded month-on-month growth in search volumes in November, both hitting record highs.

Despite the monthly decline, year-on-year search volumes on the ‘Buy’ section of realcommercial.com.au are up 23 per cent.

We’re also witnessing a seasonal decline on the ‘Lease’ section of the site, with search volumes down 5 per cent nationally compared to October.

After two record-breaking months, South Australia recorded a 14 per cent month-on-month drop in lease search volumes, but remains up 12 per cent year-on-year.

The largest year-on-year increases have been recorded in Northern Territory (38%), Tasmania (30%), Victoria (28%) and New South Wales (26%).

Search volumes for all commercial property categories are higher than what they were the same time last year, with the largest year-on-year growth seen for commercial farming (65%) and industrial/warehouse (38%) listings.

What are people and businesses looking to buy?

Demand in the retail sector increased by 6 per cent last month, perhaps supported by the slow return of workers to Australia’s CBDs.

However, almost all other categories recorded a drop in views per listing over the month.

Taking a year-on-year view, all categories have seen an uptick in demand, particularly commercial farming and showrooms, which have grown 53 per cent and 50 per cent respectively.

What are people and businesses looking to lease?

Apart from the commercial farming sector, all categories saw a month-on-month decline in views per listing in the lease sector.

Compared to the same time last year, however, all categories have recorded substantial increases, with medical/consulting listings showing the largest annual increase (54%).

Land/development listings also recorded a large year-on-year change (51%), driven by growing interest for this category in South Australia, Queensland and New South Wales.

What are the features that people and businesses are looking for?

In this month’s keyword analysis ‘residential’ continues to move up the ranks, from the second-most searched keyword to the top spot for land/development listings.

An interesting trend is appearing for those looking for commercial farms, with ‘vineyard’ topping the list for the first time.

What have been the most popular commercial listings?

See the top 10 most viewed commercial listings nationally and in each state below.

The most viewed commercial listing in November was an office available to lease in the Brisbane Technology business park in Eight Mile Plains, QLD.